ProPetro Holding Corp (PUMP)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -141,161 | -138,704 | 88,424 | 137,070 | 124,879 | 161,072 | 123,474 | 110,599 | 96,158 | 53,324 | 34,084 | -17,645 | -67,822 | -101,446 | -132,007 | -151,546 | -65,134 | 50,142 | 166,620 | 278,113 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 816,273 | 832,956 | 975,848 | 998,154 | 998,392 | 1,027,330 | 1,008,360 | 982,923 | 954,033 | 830,538 | 817,036 | 847,212 | 826,302 | 842,815 | 844,743 | 847,269 | 870,771 | 911,767 | 938,429 | 969,305 |
| Return on total capital | -17.29% | -16.65% | 9.06% | 13.73% | 12.51% | 15.68% | 12.25% | 11.25% | 10.08% | 6.42% | 4.17% | -2.08% | -8.21% | -12.04% | -15.63% | -17.89% | -7.48% | 5.50% | 17.76% | 28.69% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-141,161K ÷ ($—K + $816,273K)
= -17.29%
ProPetro Holding Corp's return on total capital has shown significant fluctuations over the periods presented. From March 31, 2020, to June 30, 2020, there was a noticeable decrease from 28.69% to 17.76%, indicating a decline in the company's efficiency in generating returns on its total capital. This trend continued, with a further drop to 5.50% by September 30, 2020, and a significant downturn to -7.48% by December 31, 2020.
The negative trajectory extended into the following periods, reaching its lowest point at -17.89% by March 31, 2021. However, the company started to show signs of improvement thereafter, with a gradual increase in return on total capital, reaching positive territory at 4.17% by June 30, 2022.
The positive momentum continued into the subsequent periods, with return on total capital climbing to 15.68% by September 30, 2023, and peaking at 13.73% by March 31, 2024. However, there was a slight decline by June 30, 2024, at 9.06%, followed by a sharp decrease to -16.65% by September 30, 2024, and a further decline to -17.29% by December 31, 2024.
Overall, ProPetro Holding Corp's return on total capital has displayed a volatile performance, with periods of both positive growth and significant decline. Continuous monitoring and strategic financial management will be essential to sustain positive returns on the company's total capital in the future.
Peer comparison
Dec 31, 2024